Dec. 16 (Bloomberg) -- Siemens AG will develop diagnostic tests for U.S. drugmaker Pfizer Inc. in an effort to sell medicines to the patients most likely to benefit from them.
The Siemens Clinical Laboratory, which is based in Berkeley, California, will lead product development to ensure efficacy, Europe’s largest engineering company said in an e-mailed statement.
“Companion diagnostics are an important enabler of targeted therapies,” John Hubbard, Pfizer’s global head of development, said in the statement.
Companion diagnostics is used to evaluate a drug’s effectiveness on particular patients. Health care companies are increasingly targeting the segment for future growth as declining health care budgets prioritize the need to ensure the efficacy pharmaceuticals before they are prescribed.
The diagnostics division generated an earnings before interest, taxes, depreciation and amortization margin of 20 percent, making it one of Munich-based Siemens’s most profitable businesses in the last fiscal year.
Siemens announced similar development deals in 2012 with HIV drugmaker ViiV Healthcare Ltd. and Tocagen Inc., a developer of an experimental brain tumor treatment, to create tests that will determine which patients will benefit from the therapies.
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